Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Record Fonterra payout means ‘good times’ for all

Media Release

FREEPHONE 0800 327 646 I WEBSITE WWW.FEDFARM.ORG.NZ 

27 February 2014

Record Fonterra payout means ‘good times’ for all

While the dry summer is starting to bite in parts of Waikato and Northland, Fonterra has delivered excellent news for New Zealand by upping its 2013/14 forecast Farmgate Milk Price to a record $8.65 per kilogram of Milk Solids (kg/MS).

“You can say New Zealand is truly a land of milk and honey with the two being at record highs,” says Willy Leferink, Federated Farmers Dairy chairperson, speaking from Federated Farmers Dairy Council in Wellington.

“I also think this will put a huge smile on Minister Guy’s face when he speaks to us later this morning.  If the forecast sticks this represents ‘good times’ for all Kiwis.

“In 2010, the NZIER said a $1 kg/MS rise in Fonterra's payout makes every New Zealander nearly $300 better off.  Given this latest 35 cent kg/MS uplift, every New Zealander could be $100 better off as a result of what we do.

“This forecast payout is now in the all-time record category too. 

“The current record remains a $7.67 kg/MS payout back in 2007/8, which, when adjusted for inflation, comes in at $8.51 kg/MS today.

“A forecast of $8.65 kg/MS, with the ten cent kg/MS dividend on top, means potential cash in hand for a fully shared up Fonterra farmer-shareholder of $8.75 kg/MS.  Most welcome is the 25 cents kg/MS increase in the monthly Advance Rate schedule from March to June.

“Yet we seriously caution farmers from counting their milk solids when sitting at the table, there’s plenty of time for counting when the season’s done.

“I am pleased to say that dairy farmers are heeding Federated Farmers message despite a series of positive forecasts, excepting the previously announced hair cut to the dividend.

“If you are a car dealer or rural agent I wouldn’t be rubbing my hands just yet.  In the three months to January 2014, the Real Estate Institute of New Zealand’s Dairy Farm Price Index actually fell by 2.9 percent. 

“In a key area like Canterbury, the REINZ noted that the dairy farm market had plateaued and demand for very good properties was being driven mainly by local buyers.

“It tells me there’s a realisation that forecasts are just that and in the case of the North Island, a great 2013/14 is needed to make up for a lousy 2012/13 drought affected season.  The climb of dairy commodities behind this revised forecast can be traced to less than optimal conditions facing our competitors abroad

“That’s why I am confident farmers are on conservative budgets and if it does stick, then they will prioritise debt retirement and productive investment, especially on environmental works. 

“Federated Farmers now anticipates the other dairy companies and cooperatives will be revising their payout forecasts to near match, if not better, Fonterra,” Mr Leferink concluded.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Tourism: China Southern Airlines To Fly To Christchurch

China Southern Airlines, in partnership with Christchurch Airport and the South Island tourism industry, has announced today it will begin flying directly between Guangzhou, Mainland China and the South Island. More>>

ALSO:

Dodgy: Truck Shops Come Under Scrutiny

Mobile traders, or truck shops, target poorer communities, particularly in Auckland, with non-compliant contracts, steep prices and often lower-quality goods than can be bought at ordinary shops, a Commerce Commission investigation has found. More>>

ALSO:

Auckland Transport: Government, Council Agree On Funding Approach

The government and Auckland Council have reached a detente over transport funding, establishing a one-year, collaborative timetable for decisions on funding for the city's transport infrastructure growth in the next 30 years after the government refused to fund the $2 billion of short and medium-term plans outlined in Auckland's draft Unitary Plan. More>>

ALSO:

Bullish On China Shock: Slumping Equities, Commodities May Continue, But Not A GFC

The biggest selloff in stock markets in at least four years, slumping commodity prices and a surge in Wall Street's fear gauge don't mean the world economy is heading for another global financial crisis, fund managers say. More>>

ALSO:

Real Estate: Investors Driving Up Auckland Housing Risk - RBNZ

The growing presence of investors in Auckland's property market is increasing the risks, and is likely to both amplify the housing cycle and worsen the potential damage from a downturn both to the financial system and the broader economy, said Reserve Bank deputy governor Grant Spencer. More>>

ALSO:

Annual Record: Overseas Visitors Hit 3 Million Milestone

Visitor arrivals to New Zealand surpassed 3 million for the first time in the July 2015 year, Statistics New Zealand said today. The record-breaking 3,002,982 visitors this year was 7 percent higher than the July 2014 year. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news